Energy entrepreneur Gyanendra Lal Pradhan has shared his views on the restoration timeline for flood-damaged hydropower projects and the future outlook of Nepal hydro sector.
Energy entrepreneur and hydropower expert Gyanendra Lal Pradhan said that hydropower projects damaged by recent floods can come back into operation within around 18 months. According to him, although floods cause huge damage to hydropower plants, these projects rarely get completely destroyed because their nature is different from other industries.
Pradhan explained that since water is main raw material for hydro projects, the loss of income during shutdown period can be recovered in long run. Even if an project stops producing electricity for one or two years, it can be restarted because of the remaining license period and earning capacity.
Damage Assessment and Restoration Timeline
Giving an example of Rasuwagadhi Hydropower Project, Pradhan said that even though headworks, tunnels, powerhouses, and staff camps were damaged by flood, total damage might not exceed 25 percent of total project cost.
He believes that all damaged hydro plants will be restored within one and a half years. He mentioned that if roads and bridges are repaired quickly, the recovery process will become much easier. Cleaning tunnels and repairing damaged structures can be done quickly, so projects will not remain closed for very long time.
Role of Insurance and Financial Management
Pradhan pointed out that if private hydropower projects have proper insurance, they can get money from insurance companies to rebuild and replace damaged structures. He shared that Rasuwagadhi project had insured itself for around Rs 14 arba with Himalayan Everest Insurance.
He emphasized that insurance claims should be based on replacement cost of new structures rather than depreciated value of old ones. He also added that insurance structure for Nepal Electricity Authority projects needs to be made more effective.
After floods, debt repayment periods and cash flows of hydro projects can be rescheduled. Once generation restarts, income will begin again, which helps manage financial impact over time.
Improving Tunnel Design and Emergency Rescue
Pradhan suggested that future hydropower designs must learn lessons from recent flooding. Connecting tunnel inlets directly to river flow increases the risk of floodwater and mud entering inside the tunnel.
Designing tunnel openings toward downstream direction can reduce risk of mud and water entering during high flood times.
He also recommended building emergency rescue rooms inside powerhouses and tunnel areas. Equipping these rooms with oxygen, emergency lights, food, and rescue tools will help save workers who get trapped during sudden floods.
Climate Risk and Monitoring Himalayan Lakes
Pradhan urged regular monitoring and studies of flood, landslide, and glacial lake risks in mountain regions. He noted that Nepal has not sufficiently monitored its vulnerable glacial lakes.
Regular checking of risky glacial lakes, lowering water levels where needed, and developing local monitoring systems are necessary steps. Information sharing with China is also important to track flood risks coming from Koshi basin side.
Need for Storage Projects over Run-of-River
In future, Nepal should prioritize storage and peaking hydro projects rather than relying only on run-of-river projects, according to Pradhan. Storage plants help control flood flow and manage water better.
He suggested studying major river basins like Koshi, Karnali, and Gandaki based on their specific risks and possibilities. Koshi basin needs serious study regarding glacial lake outburst and landslide risks.
Views on Share Market, Chilime, and Capital Market Plan
Speaking about Chilime Hydropower Company, Pradhan called it a strong company. He advised long-term investors to look at financial fundamentals of company rather than worrying about short-term share price drops.
He stated that current stock market in Nepal is heavily driven by trading activity, causing unusual price gaps between strong and weak companies. He advised investors not to invest using borrowed money and to use their extra capital with a long-term view.
Regarding government 21-point capital market rescue plan, Pradhan said it could boost investor confidence gradually, though fast implementation is necessary for lasting market recovery.
Hydropower IPOs, Right Shares, and Domestic Power Use
Pradhan stated that hydro companies under construction should not be evaluated with same traditional net worth criteria as existing companies, because hydro plants only earn revenue after operation starts. IPO prices should be set according to risk and actual project status rather than stopping them altogether.
For right shares, authorities must ensure that money raised is actually used for constructing intended hydropower project.
To increase domestic electricity consumption, government should promote electric stoves in households by offering subsidies and lower tariffs. Promoting electric vehicles and electric railways, like Birgunj-Kathmandu electric railway, can also boost domestic power demand.
Export to India and Economic Outlook
Nepal long-term hydro future lies in exporting power to neighboring countries like India alongside domestic consumption. Since India needs power during night time as solar generation drops, storage projects will be key for exporting electricity during peak hours.
On overall economy, Pradhan cautioned that rapid economic recovery will take time as investor confidence remains weak across real estate, trade, and industry. He advised against taking loans to make risky investments in current market conditions.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
